If Two Countries Each Are Currently Producing Two Goods, and Each

question 138

Multiple Choice

If two countries each are currently producing two goods, and each begins to specialize in the good in which it has a comparative advantage, what will happen to total world output?

• A)​It will increase.
• B)​It will decrease.
• C)​It will be unchanged in both countries.
• D)​It will rise in one country, and fall in the other, but the total is unchanged.

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